A co-operative is an organization or firm that is possessed, managed and maneuvered by a group of individuals for their personal gains. The basic principles of any co-operative includes offering unbridled and unconditional enrollment where the associates acknowledge the accountabilities of being involved in lieu of the services made available by the organization. Every associate of the co-operative makes a payment in equity capital and has a share in controlling the organization on the principle of one member having one vote and not according to the percentage of any member's contribution.
The law permits the co-operatives to frame their own by-laws or rules describing who can secure a membership, how to secure a membership and other terms and condition. The co-operatives also enjoy the freedom to chart out the members' privileges and liabilities, provided they do no clash with the existing laws of the particular jurisdiction. It may be noted here that there are varieties of co-operatives each having different types of members and dissimilar functions. While worker co-operatives are actually firms owned and controlled by the members of staff as their associates, there are also childcare co-operatives that offer a medium to the parents to become members and participate in the management of the baby sitting or infant care amenities to some extent. Often people get together to establish co-operatives to offer commerce and customer benefits to the associates.
Housing co-operative societies formed for matters relating to real estate offer their members reasonably priced housing and also provides them the prospect to participate in the management as well as the maintenance of their respective residential complexes. In other words, housing co-operative is an organization or a firm that owns the land on which several housing apartments have been constructed for the residence of its members. The equity holders in the co-operative do not possess the houses they live in, but enjoy the privilege of residing in them. The basic aim and the common interests and activities of such housing co-operatives are to make a place available for the stake holder to live as well as provide them with officially permitted means to own the assets in cooperation or mutually.
The procedure of establishing housing co-operative is quite simple. First, a corporation or firm is established covered by a co-operative with a view to possess the real estate. It is important to note here that all the stake holders in the corporation contribute money to own a share of the firm. However, under no circumstance do they have possession rights on the residential units he or she may be occupying. Instead, the firm offers the stake holders the rights to occupy the residential units through separate rental contracts. The rights of the stake holders of a housing co-operative are decided according to the corporate rules, regional occupancy laws as well as the agreements granting them occupancy rights. Before concluding discussion on the topic, it is essential to mention that the co-operatives or firms are dependent on the laws in their respective jurisdictions.